People will not let themselves be caught long stocks if inflation reasserts itself and they will not buy as many if the Fed stops hiking again. A growing portion of that withdrawn money is not going into bonds. It is going into GoldSPOT GOLD TOPS $1,900 AN OUNCE FOR FIRST TIME SINCE MAYSPOT SILVER RISES 3%Authored by Goldfix CPI came in close to expected and we could not have asked for a better reaction. The market had been discounting a very low CPI level, and we had mentioned that an “unchanged” or higher CPI level would not be so good obviously. That was correct as far as stocks go. Stocks are bid, but nothing exciting. There are sellers keeping a lid on them so far.But the very pleasant Golden surprise is this:In Gold and Silver, not only are the sellers NOT selling, but there are even more flows rotating out of stocks and into the asset class today. The flows into GLD and SLV are signs of a longer term trend today. Domestic demand is the reason for this rally.Here is an excerpt from our Founders note today reminding everyone of that worry:From here as far as we are concerned: A pullback may come, but the die is seemingly cast. People will not let themselves be caught long stocks if inflation reasserts itself and they will not buy as many if the Fed stops hiking again. A growing portion of that money is not going into bonds. it is going into Gold To Be Clear: We fully expect a pullback to come in a big way. But it would appear that if everything gets hit again, Stocks should perform worse than metals for a change. That has been happening for a month or so now, but we wanted something like this to help codify it before sharing with you all. The pullback may come next week as January flows kind of exhausted themselves. Expect some big Fed talk to get stocks/ Gold down too.For us, a working thesis that US investors are now being told to buy Gold by their banks seems to have been validated This time they are doing it. Gold and Silver are the “other” assets to own in an Anti-Goldilocks environmentend noteContinue Reading here.Follow VBL’s Ghost on twitterContributor posts published on Zero Hedge do not necessarily represent the views and opinions of Zero Hedge, and are not selected, edited or screened by Zero Hedge editors.Loading…
